According to the March executive order, the U.S. Treasury Department provided a framework for crypto assets that President Joe Biden requested.
U.S. Treasury Secretary Delivers a Crypto Framework to Biden
The U.S. Department of the Treasury published a fact sheet titled “Framework for International Engagement on Digital Assets” Thursday.
It states that the Secretary of the Treasury has delivered to President Joe Biden “a framework for interagency engagement with foreign counterparts and in international fora as directed in the President’s executive order on Ensuring Responsible Development of Digital Assets.” Biden’s executive order on crypto regulation was issued on March 9.
It calls on the U.S., its foreign allies and other countries to cooperate to develop international standards for crypto asset regulation. The Treasury provided:
Arbitrage is possible because of inequal regulation and supervision across jurisdictions. This raises financial stability risks and increases the risk to investors, consumers, businesses and markets.
“Inadequate anti-money laundering and combating the financing of terrorism (AML/CFT) regulation, supervision, and enforcement by other countries challenges the ability of the United States to investigate illicit digital asset transaction flows that frequently jump overseas, as is often the case in ransomware payments and other cybercrime-related money laundering,” the department added.
Additionally, Treasury stated that the U.S. has to work closely with international partners in order to lead the discussion on digital currency (CBDCs), and payment architectures for central banks.
“Such international work should continue to address the full spectrum of issues and challenges raised by digital assets, including financial stability; consumer and investor protection, and business risks; and money laundering, terrorist financing, proliferation financing, sanctions evasion, and other illicit activities,” the Treasury noted.
The U.S. is engaged in key international relations with G7 and G20 countries. This includes the Financial Stability Board(FSB), Financial Action Task Force(FATF), Egmont Group of Financial Intelligence Unitss (FIUs), Organization for Economic Cooperation and Development, OECD, The International Monetary Fund, The World Bank and other Multilateral Development Banks.
“What’s outlined in the framework is intended to ensure that, with respect to the development of digital assets, America’s core democratic values are respected; consumers, investors, and businesses are protected; appropriate global financial system connectivity and platform and architecture interoperability are preserved; and the safety and soundness of the global financial system and international monetary system are maintained,” the Treasury detailed.
Let us know your thoughts about the U.S. Treasury Department’s international framework for engagement in crypto asset transactions. Please leave your comments below.
Images CreditsShutterstock. Pixabay. Wiki Commons
DisclaimerThis article serves informational purposes. This is not an invitation to purchase or sell directly, nor a suggestion or endorsement of products, services or companies. Bitcoin.com doesn’t offer investment, tax or legal advice. This article does not contain any information, products, or advice that can be used to cause or alleged result in any kind of damage.
